Application of the Cournot and Stackelberg Mixed Duopoly Models for Mexican Real Estate Market

Kalashnikov, Vyacheslav V.; Flores, Daniel; González, Javier

doi:10.1007/978-3-642-29977-3_39

Cited by 3 publications

(2 citation statements)

References 7 publications

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“…Cournot duopoly model is used to resolve the problem how decision makers determine the optimal production to maximize their utility. Cournot duopoly model is applied in many areas, for example, the real estate market competition (Kalashnikov et al , 2012), the economic development model (Wu et al , 2010), competitive advertising (Wang et al , 2016) and so on.…”

Section: Methodsmentioning

confidence: 99%

The influence of local government decision-making competition on enterprise innovation investment under information asymmetry and multiple risk appetite type

Wang

2017

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Purpose This paper aims to analyze the impact of the degree of local government decision-making competition on the optimal investment amount, investment location and investment failure of innovative investment enterprise under multiple risk appetite type of innovative investment enterprise. This paper also points out three regulation paths that central government could use to avoid the influence of local government decision-making competition on the validity of enterprise innovation investment (EII). Design/methodology/approach Based on analysis frame of government competition about unitary government states, this paper builds duopoly decision model to analyze influence of local government decision-making competition on EII. Considering information asymmetry and multiple risk appetite type of decision-maker, this paper analyzes influence of local government decision-making competition on location selection, the optimal investment amount, identification of investment failure and exit mechanism of EII according to different relationship between reference points of local government decision-making competition and EII. Finding The optimal investment amount of EII has positive correlation with risk appetite type of decision-maker, local government decision-making competition. Identification of investment failure and exit are divided into three phases. The boundary conditions are directly related to risk appetite type and amount of local government subsidy. Regional factor endowment and degree of preferential policy are main factors attracting enterprise investment. Local governments should analyze the interests of EII. There are three paths to avoid vicious competition among local governments: unified planning, revising of audit index, increasing penalties for failure of policies. Originality/value With rapid development of China's new urbanization process, urban economy has become an important carrier of economic development. Attracting foreign direct investment is an important measure to promote urban economic growth, and EII is the most important one. However new urbanization would lead to local government decision-making competition and then influence EII. Through analyzing influence of local government decision-making competition on EII, theory guidance could be provided to decision makers of innovation investment.

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Section: Methodsmentioning

confidence: 99%

The influence of local government decision-making competition on enterprise innovation investment under information asymmetry and multiple risk appetite type

Wang

2017

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“…Cournot duopoly model is applied in many areas, e.g. the real estate market competition (Kalashnikov et al, 2012), the economic development model (Wu et al, 2010), competitive advertising (Ahmed et al, 1999) and so on. Model 2, using Cournot duopoly model, explains how to reduce the effects brought by local government decision-making competition.…”

Section: K 445mentioning

confidence: 99%

How to reduce local government decision-making competition in China’s new urbanization process

Wang

2015

Kybernetes

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Purpose – The purpose of this paper is to analyze the impact of local government decision-making competition new urbanization, further to seek measures to weaken the negative effect of local government decision-making competition. Design/methodology/approach – This paper first puts forward the three paths which make local government decision-making competition: construction of new-style urbanization, economic development and construction of people’s livelihood and take China’s new-style urbanization as an example, the authors analyzed the internal mechanism of decision making of local government competition which caused by above three paths. Second, using the prospect theory, risk aversion theory and Cournot duopoly model, the authors analyzed how to avoid the local government decision-making competition and how to reduce the harm caused by local government decision-making competition. Findings – The central government can curb the appearance of local government competition strategy through regulating and controlling the effectiveness of local government protective-investment policy, improving the degree of market competition and punishment coefficient of government decision-making failure and further, the authors can reduce the detriment of decision-making competition between local governments through adjusting the revenue function of local government in the process of new-style urbanization. Originality/value – New-style urbanization is the main driving force of China’s future economic development, however, in the process of new-style urbanization, because of the “principle-agent” relationship between central government and local government, officials achievements appraisal mechanism and promotion game, they all cause competition between local government decision making, and this will weaken the positive effect of urbanization. Although, there are many researches on horizontal and intergovernmental competition, most researches devoted to how to avoid it from the angle of institutional economics, and the suggestions put forward by these researches are hardly applied. Anyone interested in how to avoid local government decision-making competition and reduce the negative influences of it from the angle of unitary government state’s reality will find this paper valuable.

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Efficiency of Small Business Management in the Communications Industry: Simulation of the Competitive Environment

Plotnikov

Leontyev

2015

Procedia Economics and Finance

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Application of the Cournot and Stackelberg Mixed Duopoly Models for Mexican Real Estate Market

Cited by 3 publications

References 7 publications

The influence of local government decision-making competition on enterprise innovation investment under information asymmetry and multiple risk appetite type

The influence of local government decision-making competition on enterprise innovation investment under information asymmetry and multiple risk appetite type

How to reduce local government decision-making competition in China’s new urbanization process

Efficiency of Small Business Management in the Communications Industry: Simulation of the Competitive Environment

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